The German mechanical and plant engineering is feeling the consequences of sanctions, the crisis in Russia: exports are down 16 percent
This article originally appeared at German Economic News
The ruble decline exacerbated the crisis of the German engineering company in Russia. In the first three quarters of this year, the engineering exports have decreased in the country by 16 percent to 4.9 billion euros, the industry association VDMA said on Wednesday.
The current crash is exacerbating the situation considerably and make an upturn in investment in the near future is unlikely. The ruble devaluation and dwindling investments loaded the stores in the country since mid-2013.
"Russia is a very important market, the risks arising from the current situation for the coming year, currently growing hourly for the German engineering," says Ulrich Ackermann, head of the VDMA Foreign Trade in Frankfurt.
However, the industry regarded as the backbone of the German economy has a broad international base, with around one million employees.
Currently Russia is reportedly the fifth most important market for the German engineering, the proportion of businesses in Russia the total German export machine was in the first nine months at 4.4 percent. Last year, Russia ranked yet in fourth place.